axservice[at]aol.compliance (John H. Fisher) wrote:

- quote -

It seems to me that the so-called "free e-file" is sort of a
scam, at least for those who have to file state income tax
returns. My son's income qualifies him for all the "free
e-file" services listed on the IRS Web site, but none
provide free state e-file. The companies seem to make up via
charges for the state return what they lose on the federal
return. Of source, the taxpayer could file their Federal
return for free and then enter all the info manually into
their state return.

--
Vic Roberts

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IR-2004-28, Mar. 3, 2004

E-filing, Home Computer Use Surges

WASHINGTON - The Internal Revenue Service said today that
electronic filing continues its solid growth, with early tax
returns showing e-filing running more than 9 percent ahead
of last year's pace. Overall, the number of tax returns has
increased 2.8 percent compared to last year. More than 33.5
million returns have been e-filed, about 3 million more than
this time last year. Returns prepared and filed from home
computers have jumped 23 percent.

"We continue to see strong growth in e-filing," said IRS
Commissioner Mark W. Everson. "More and more taxpayers are
learning it's an easy way of reliably filing tax returns.
And e-filers get their refunds in half the time of those
filing a paper return."

The IRS Free File program also has shown growth. So far, the
IRS has received more than 1.9 million returns through Free
File, an increase of more than 24 percent from last year,
when the program was introduced. Free File is a
public-private partnership between the IRS and a consortium
of tax software companies that offer free e-file services to
eligible taxpayers. Free File, which is available only
through IRS.gov, gives taxpayers free access to the benefits
of online tax preparation and e-filing.

"Free File helps taxpayers in underserved and disadvantaged
communities, and it's working," Everson said.

Each private company sets its own eligibility requirements
for the Free File program. The IRS hosts the Free File Web
page, but the online tax preparation occurs on the
companies Web sites. The companies file the returns using
IRS's secure e-file transmission system. To find out more
about Free File, visit the IRS Web site.

Tax returns filed so far show:

- The total number of e-filed returns hit 33.5 million, a
more than 9 percent increase from last year.
- Nearly 7.7 million taxpayers have prepared and filed
returns on their home computers, a 23 percent increase from
last year.
- Tax professionals have submitted more than 23 million
e-filed returns, a 7.2 percent increase from last year.
- Direct deposit of refunds climbed to nearly 28 million, a
9.3 percent increase.
- 30 -

2004 FILING SEASON STATISTICS

Cumulative through the week ending 2/28/03 and 2/27/04

2003 2004 % Change

Individual Income Tax Returns

Total Receipts 47,087,000 48,390,000 2.8
Total Processed 40,003,000 42,260,000 5.6

E-filing Receipts:
TOTAL 30,669,000 33,511,000 9.3
TeleFile (phone) 2,736,000 2,547,000 -
6.9
Computer 27,933,000 30,964,000 10.9
Tax Professionals 21,700,000 23,273,000 7.2
Self-prepared 6,233,000 7,691,000 23.4

Tax Year 2003 Refunds Certified:

Number 36,907,000 38,932,000 5.5
Amount of principal $ 78.826 billion $ 86.836 billion

10.2
Average refund $2,136 $2,230 4.4

Direct Deposit Refunds:

Number 25,586,000 27,955,000 9.3
Amount $ 62.797 billion $ 70.658 billion
12.5
Average $2,454 $2,528 3.0

"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=

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